to this rule is when the prospective franchisee is also a powerful corporate entity controlling a highly lucrative location, and/or captive market. For example, a large sports stadium for which prospective franchisors must compete to exclude one another. However, under specific circumstances like transparency, favourable legal conditions, financial means and proper market research, franchising can be a vehicle of success for both a large franchisor and a small franchisee.

Thirty-six countries have laws that explicitly regulate franchising,